RE: Tharp's Special Report on Money Management

["Sean Taylor" <cloudnine@xxxxxxxxxxxx>]

<FONT face=Arial color=#0000ff 
size=2>Gene,
<FONT face=Arial color=#0000ff 
size=2> 
Thank 
you for a detailed summary.  It sounds like the report offers some useful 
additions to his book (as well as duplicating part of the 
book).
<FONT face=Arial color=#0000ff 
size=2> 
Thanks 
again,
<FONT face=Arial color=#0000ff 
size=2>Sean

  <FONT face=Tahoma 
  size=2>-----Original Message-----From: 
  owner-metastock@xxxxxxxxxxxxx [mailto:owner-metastock@xxxxxxxxxxxxx]On 
  Behalf Of Gene RicciSent: Saturday, November 17, 2001 7:49 
  PMTo: metastock@xxxxxxxxxxxxxSubject: Re: Tharp's 
  Special Report on Money Management
  Sean, here's a report FYI:
   
  
  Part I is essentially a repeat of the info in 
  Tharp's book which lays the foundation for the second part.  Part II has 
  some interesting and inspirational ideas (in the order listed):0) do 
  statistical measures on your trading style/systems (%wins, $win/$loss ratio), 
  and choose those systems (or system combinations) with high-expectancy and/or 
  high reward/risk ratios,1) define your 'portfolio heat' and use the 
  80%*Kelly formula to define max portfolio risk,2) use the 'grouping' model 
  (diversification) to define max risk per position,3) place emphasis on the 
  'volatility risk' model, but use the 'percent risk' model for further 
  conservative constraint, to determine position size for each 
  position,and,4) evaluate total account value and positions on a daily 
  (or more suitable periodic) basis, recalculate appropriate position sizes, and 
  place trading orders accordingly.It seems that this scenario of 
  alternatives, if applied consistently, should yield pretty phenomenal results 
  over a decent period of time, far better than most scenarios that the majority 
  of traders/investors employ.
   The key to the whole thing is determined by the measurements in 
  step '0', and the measure of 'volatility' in step '3' --- these are 
  crucial.  Everything else is just plain simple math and one's max level 
  of (model) risk selected for emotional comfort. Gene
   
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    ----- Original Message ----- 
    <DIV 
    style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From: 
    Sean 
    Taylor 
    To: <A title=metastock@xxxxxxxxxxxxx 
    href="mailto:metastock@xxxxxxxxxxxxx";>Metastock List 
    Sent: Friday, November 16, 2001 11:03 
    PM
    Subject: Tharp's Special Report on 
    Money Management
    Has anybody read "Tharp's Special Report on Money 
    Management"?See website:<A 
    href="http://www.iitm.com/books/rptmm.htm";>http://www.iitm.com/books/rptmm.htmIt 
    claims to include 27 position sizing methods.  I've read his 1st 
    book,Trade your way to financial freedom (after recommendations on this 
    list).  Ithink it's brilliant.I wondered whether this 'special 
    report' provided greater depth to positionsizing for various 
    circumstances.Thanks,Sean